Dama Financial, a provider of access to financial services for the cannabis industry, will buy GrowFlow Corp. a B2B SaaS platform dedicated to helping its customers grow their marijuana businesses. The San Francisco, California-based company confirmed Thursday it has signed an agreement to buy GrowFlow, whose business management and compliance tools have processed more than $3.3 billion for cannabis retailers, cultivators, processors, and distributors.
Why It Matters
Combining Dama's fintech and payment solutions and GrowFlow's industry-leading software platform will create a sophisticated, comprehensive solution for cannabis companies, integrating product, operations, compliance and financial data. The highly scalable platform will fulfill the business needs and regulatory obligations of any licensed cannabis business — dispensary or wholesale — everywhere cannabis is legal in the United States.
"With this acquisition, we are creating the leading platform for cannabis operators, essentially a one-stop-shop for the business tools they need to thrive." Anh Hatzopoulos, Dama's co-founder and CEO stated. "We created Dama to solve real problems for the industry through innovation, and integrating GrowFlow's software into our fintech is a huge step forward in that mission. To be successful in the long term, cannabis operators need legal, compliant, forward-looking solutions like Dama's that don't skirt restrictions through workarounds, and this sets us up to keep innovating to champion our customers and propel a booming market."
The transaction is expected to close this quarter, subject to regulatory approvals and other customary closing conditions.
Greenhill & Co., LLC is acting as financial advisor and Goodwin Proctor LLP as legal advisor to Dama. Cooley LLP is the legal advisor to GrowFlow.
"I could not be more excited about this merging of minds and technologies," Travis Steffen, CEO of GrowFlow said. "Our leadership teams have nearly identical views of the industry and how it is evolving. Bringing our solutions together will allow us to serve customers in many unique ways and compete on much more than price."
